QUESTION 3 (20 MARKS)

REQUIRED Use the information given below to calculate each of the following independently: 3.1 Expected total Marginal Income and Net Profit/Loss for December 2023. (4 marks) 3.2 Margin of safety (in units). (4 marks) 3.3 Selling price per unit that will enable the company to break even. (4 marks) 3.4 Sales value required to achieve a net profit of R1 497 600. (4 marks) 3.5 Break-even value using the marginal income ratio, if the company spends an additional R220 800 on advertising. (4 marks)

INFORMATION Ndwedwe Limited manufactures steel cupboards. The following information was extracted from the budget for December 2023: 1. Expected production and sales (units) 1 000 2. Selling price per cupboard R3 000 3. Variable manufacturing costs per cupboard R1 440 4. Fixed manufacturing overheads R542 400 5. Other costs: 5.1 Sales commission per unit R600 5.2 Fixed administrative and marketing costs R360 000